Equity Injection
/ˈɛkwɪti ɪnˌdʒɛkʃən/
Definitions
- (n.) The provision of capital to a company by shareholders or investors to strengthen the company’s financial base.
The startup secured an equity injection to fund its expansion plans.
- (n.) In insolvency or restructuring, a capital investment made to support a financially distressed company and facilitate its continuation or turnaround.
The court approved an equity injection to keep the troubled company operational during reorganization.
Forms
- equity injection
- equity injections
Related terms
See also
Commentary
Use with precision to distinguish from debt financing; equity injection implies ownership stake dilution rather than repayable debt.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.